Thread: Discuss the GBP/USD with a DailyFX Analyst

I know this might sound crazy but I took a long on DOW JONES

Long BP/USD @

5697 X 5.....Active Trade.....Open Limit Mental Stop Loss

Long EUR/JPY @

100.50......Active Trade.....Open Limit Mental Stop Loss

Long US30 @

12,832................Open Target

Originally Posted by Alejandro Zambrano

The markets initial reaction is disappointment of not getting more that an extension of operation TWIST - thus the sell off its however a bit early to judge on how we are going to land - especially as the press conference is still ahead of us - I closed all of my short term positions just ahead of the news event.

Press Release

Release Date: June 20, 2012

For immediate release

Information received since the Federal Open Market Committee met in April suggests that the economy has been expanding moderately this year. However, growth in employment has slowed in recent months, and the unemployment rate remains elevated. Business fixed investment has continued to advance. Household spending appears to be rising at a somewhat slower pace than earlier in the year. Despite some signs of improvement, the housing sector remains depressed. Inflation has declined, mainly reflecting lower prices of crude oil and gasoline, and longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects economic growth to remain moderate over coming quarters and then to pick up very gradually. Consequently, the Committee anticipates that the unemployment rate will decline only slowly toward levels that it judges to be consistent with its dual mandate. Furthermore, strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee anticipates that inflation over the medium term will run at or below the rate that it judges most consistent with its dual mandate.

To support a stronger economic recovery and to help ensure that inflation, over time, is at the rate most consistent with its dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 1/4 percent and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

The Committee also decided to continue through the end of the year its program to extend the average maturity of its holdings of securities. Specifically, the Committee intends to purchase Treasury securities with remaining maturities of 6 years to 30 years at the current pace and to sell or redeem an equal amount of Treasury securities with remaining maturities of approximately 3 years or less. This continuation of the maturity extension program should put downward pressure on longer-term interest rates and help to make broader financial conditions more accommodative. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. The Committee is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; Elizabeth A. Duke; Dennis P. Lockhart; Sandra Pianalto; Jerome H. Powell; Sarah Bloom Raskin; Jeremy C. Stein; Daniel K. Tarullo; John C. Williams; and Janet L. Yellen. Voting against the action was Jeffrey M. Lacker, who opposed continuation of the maturity extension program.

Statement Regarding Continuation of the Maturity Extension Program

Long BP/USD @

5697 X 5.....Active Trade.....Open Limit Mental Stop Loss

Long EUR/JPY @

100.50......Active Trade.....Open Limit Mental Stop Loss

Long US30 @

12,832................Open Target...All US30 Trades Closed @ 12,870...Profits Booked

After all that whipsaw the market is right back where we were. Cable did not break the last high.. Short, also short AUD/USD. If nothing else play the fade down on AUD. Cable needs to break 1.5610 to be a safe bear.

Originally Posted by Breeze

Long BP/USD @

5697 X 5.....Active Trade.....Open Limit Mental Stop Loss

Long EUR/JPY @



100.50......Active Trade.....Open Limit Mental Stop Loss

Long US30 @

12,832................Open Target...All US30 Trades Closed @ 12,870...Profits Booked

Congratulations Breeze! You had some awesome trades! How did you do it?

Originally Posted by Luxuriant

After all that whipsaw the market is right back where we were. Cable did not break the last high.. Short, also short AUD/USD. If nothing else play the fade down on AUD. Cable needs to break 1.5610 to be a safe bear.

Thank you Greg...I used this lvl's of support for Dow Jones they seems to be working well......but most important I'm stuck infront of the screen so I dont miss any opportunity....hard work
S3 S2 S1 P R1 R2 R3
Woodie's 12762.5 12793 12816.5 12847 12870.5 12901 12924.5

I went Long again

Originally Posted by Gregory McLeod

Congratulations Breeze! You had some awesome trades! How did you do it?

Thank you Greg...I used this lvl's of support for Dow Jones they seems to be working well......but most important I'm stuck infront of the screen so I dont miss any opportunity....hard work
S3 S2 S1 P R1 R2 R3
Woodie's 12762.5 12793 12816.5 12847 12870.5 12901 12924.5

SSI Details:

EURUSD - The ratio of long to short positions in the EURUSD stands at -1.46 as nearly 59% of traders are short. Yesterday, the ratio was at -1.44 as 59% of open positions were short. In detail, long positions are 6.5% lower than yesterday and 13.6% weaker since last week. Short positions are 5.7% lower than yesterday and 8.7% weaker since last week. Open interest is 6.0% weaker than yesterday and 2.2% below its monthly average. The SSI is a contrarian indicator and signals more EURUSD gains.

GBPUSD - The ratio of long to short positions in the GBPUSD stands at -1.01 as nearly 50% of traders are short. Yesterday, the ratio was at -1.06 as 52% of open positions were short. In detail, long positions are 0.9% higher than yesterday and 30.3% weaker since last week. Short positions are 4.2% lower than yesterday and 28.1% stronger since last week. Open interest is 1.7% weaker than yesterday and 16.4% below its monthly average. The SSI is a contrarian indicator and signals more GBPUSD gains.

GBPJPY - The ratio of long to short positions in the GBPJPY stands at 1.96 as nearly 66% of traders are long. Yesterday, the ratio was at 2.42 as 71% of open positions were long. In detail, long positions are 15.7% lower than yesterday and 9.6% weaker since last week. Short positions are 3.8% higher than yesterday and 12.5% stronger since last week. Open interest is 10.0% weaker than yesterday and 0.5% above its monthly average. The SSI is a contrarian indicator and signals more GBPJPY losses.

USDJPY - The ratio of long to short positions in the USDJPY stands at 4.74 as nearly 83% of traders are long. Yesterday, the ratio was at 5.47 as 85% of open positions were long. In detail, long positions are 11.1% lower than yesterday and 0.5% weaker since last week. Short positions are 2.5% higher than yesterday and 7.3% stronger since last week. Open interest is 9.0% weaker than yesterday and 9.8% below its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.

USDCHF - The ratio of long to short positions in the USDCHF stands at 1.10 as nearly 52% of traders are long. Yesterday, the ratio was at 1.07 as 52% of open positions were long. In detail, long positions are 0.8% higher than yesterday and 9.2% stronger since last week. Short positions are 1.5% lower than yesterday and 8.9% weaker since last week. Open interest is 0.3% weaker than yesterday and 6.6% below its monthly average. The SSI is a contrarian indicator and signals more USDCHF losses.

USDCAD - The ratio of long to short positions in the USDCAD stands at -1.06 as nearly 52% of traders are short. Yesterday, the ratio was at 1.06 as 52% of open positions were long. In detail, long positions are 9.7% lower than yesterday and 33.8% stronger since last week. Short positions are 2.1% higher than yesterday and 10.2% weaker since last week. Open interest is 4.0% weaker than yesterday and 4.8% below its monthly average. The SSI is a contrarian indicator and signals more USDCAD gains.


AUDUSD - The ratio of long to short positions in the AUDUSD stands at -1.22 as nearly 55% of traders are short. Yesterday, the ratio was at -1.70 as 63% of open positions were short. In detail, long positions are 2.9% higher than yesterday and 21.2% weaker since last week. Short positions are 26.2% lower than yesterday and 24.9% stronger since last week. Open interest is 15.4% weaker than yesterday and 2.7% below its monthly average. The SSI is a contrarian indicator and signals more AUDUSD gains.

NZDUSD - The ratio of long to short positions in the NZDUSD stands at -1.18 as nearly 54% of traders are short. Yesterday, the ratio was at -1.26 as 56% of open positions were short. In detail, long positions are 6.0% lower than yesterday and 29.5% weaker since last week. Short positions are 12.3% lower than yesterday and 23.8% stronger since last week. Open interest is 9.5% weaker than yesterday and 10.9% below its monthly average. The SSI is a contrarian indicator and signals more NZDUSD gains.

EURCHF - The ratio of long to short positions in the EURCHF stands at 33.83 as nearly 97% of traders are long. Yesterday, the ratio was at 32.91 as 97% of open positions were long. In detail, long positions are 0.9% higher than yesterday and 8.2% weaker since last week. Short positions are 1.8% lower than yesterday and 3.9% stronger since last week. Open interest is 0.8% stronger than yesterday and 8.3% below its monthly average. The SSI is a contrarian indicator and signals more EURCHF losses.

Read more about the EURCHF in our special report: Euro/Swiss Franc Nears 1.20, Swiss National Bank Hovers-Trade Setups? | DailyFX
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
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GBP/USD Thread In Touch with FOMC Policy Decision- 43% of respondents in the GBP/USD thread said that Operation Twist would be extended. Big Congratulations!

Originally Posted by Breeze

Thank you Greg...I used this lvl's of support for Dow Jones they seems to be working well......but most important I'm stuck infront of the screen so I dont miss any opportunity....hard work
S3 S2 S1 P R1 R2 R3
Woodie's 12762.5 12793 12816.5 12847 12870.5 12901 12924.5

Thank you for sharing your insights, they are very valuable! I know your examples are helping many traders which is good "Pip Karma".
I wish you continues success!

Regards,

Greg

London session review and outlook June 20 - 2012
Review of markets covered in today's edition of Bulls vs. Bears: EUR/USD, GBP/USD, AUD/USD, FTSE100, S&P500, Gold, Brent Crude and WTI.




Regards

Alejandro Zambrano
Currency Strategist | DailyFX Forum (London)
azambrano@fxcm.com

Follow me on twitter: https://twitter.com/AlejandroDFX


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Attachment 134626


triangle



booked all 0.80777

Long BP/USD @

5697 X 5.....Active Trade.....Open Limit Mental Stop Loss

Long EUR/JPY @

100.50......Active Trade.....Open Limit Mental Stop Loss....Closed @ 101.00....Profits Booked